Sainsbury’s Bank is cutting the number of Nectar Points its credit card customers can earn on purchases, sparking a flood of complaints.
Sainsbury’s Bank credit card customers currently earn two Nectar Points for every £1 spent at Sainsbury’s, Argos, Habitat and Tu Clothing. From November 1, this will increase to one point for every £2 spent at these retailers.
Some disgruntled customers have pointed out how helpful those extra points could have been during the cost of living crisis.
Here we look at the difference these upcoming changes will make to your Nectar Points earnings and compare Sainsbury’s Bank rewards to other supermarket credit cards.
What happens with Sainsbury’s Bank credit card Nectar Points?
Sainsbury’s Bank has detailed the upcoming Nectar Points offer in an updated version of its credit card terms and conditions.
If you were only to collect Nectar Points via a Sainsbury’s Bank credit card, you will see a substantial drop from 1 November.
For example, if you spend £10 on the credit card at Sainsbury’s right now, you will earn 20 Nectar points. Nectar points are worth 0.5p each, so you’ll earn 10p cashback on the purchase.
From November 1, spending £10 at Sainsbury’s would only earn you five Nectar Points, or 2.5 pence.
What if you made a larger purchase, for example buying a household appliance from Argos? Well, spending £250 on a Sainsbury’s Bank credit card would currently earn you 500 Nectar Points, which equals £2.50. From November you will get 125 points or 62p.
No matter how much you spend, you’ll get 75% less after November.
Keep in mind that this promotion is separate from Sainsbury’s regular collection of Nectar Points, which you collect with a Nectar card or app – separate from the credit card. These Nectar Points can be collected together with the credit card and earn you one point for every £1 spent at Sainsbury’s.
But even if you factor those extra Nectar Points into the equation, you’d still be earning a sixth – or 17% – less than before.
The way you earn Nectar Points with other retailers – one point for every £5 spent – will not change.
- Learn more: loyalty cards compared
What does Sainsbury’s Bank say?
When asked why the change was taking place, Sainsbury’s Bank replied:
“As costs rise, we are working hard to keep prices low. We regularly review our offerings to ensure we are making the biggest difference for the most customers and write to customers to explain that our promotion of Sainsbury’s Bank credit card points change, for new and existing customers.
“While we understand this offer is popular with credit card holders, we are sure that all customers will continue to find great value and save money with Sainsbury’s thanks to our low-cost food products. prices, our competitive financial services and our affordable Argos and Habitat brands.”
How do other supermarket credit cards compare?
Sainsbury’s is not the only supermarket to have its own credit card. There are a number of other credit cards that reward you for grocery shopping.
We’ve listed them alphabetically below.
Information correct as of 02/09/22. *The John Lewis/Waitrose Partnership Card is currently closed to new applicants. It is due to relaunch in november.
- Learn more: best credit card offers
If not, how can you save on shopping at the supermarket?
While supermarket credit cards are a great way to earn rewards on your spending, they probably won’t dictate where you shop.
If you are looking for the cheapest supermarket, you might want to check our supermarket price comparison. Which month? compares prices at all major supermarkets to help you decide which one you should visit.
In July, Aldi was the cheapest supermarket, followed by fellow discounter Lidl.
It was the second month in a row this year that Aldi was the cheapest. Lidl was cheaper for the other months in 2022.
We also have many tips for spend less at the supermarketand I discovered all how supermarkets are helping shoppers during the cost of living crisis.
